Philadelphia’s  Assessment 

Troubles 


A  Constructive  Program  for  their  Cure 


Prepared  for  the  City  Club  of  Philadelphia 

by 

WALTER  W.  POLLOCK 


President  Manufacturers’  Appraisal  Company,  Cleveland,  Ohio 


b  5  *L-  \ 

■ynvY 


STUDY  of  the  assessment  conditions  iA-Philadelphia  in 
1910  and  since  then  has  made  the  writer  and  his  associates 
in  the  operation  of  the  Somers  System  very  familiar  with 
the  tax  valuation  problems  that  must  confront  any  city 
administration.  With  an  idea  solely  to  be  helpful  to  Mayor  Blank- 
enburg  and  his  associates  the  following  letter  was  addressed  to  the 
Mayor  of  Philadelphia  on  December  13,  1912.  Inasmuch  as  it  con¬ 
tains  many  facts  of  importance,  not  only  to  the  officials  of  the  city, 
but  to  the  citizens  as  well,  it  is  herewith  reproduced  for  the  benefit 
of  the  members  of  the  City  Club  and  other  citizens. 


LETTER  ADDRESSED  TO  MAYOR  RUDOLPH 

BLANKENBURG 


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X 

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Philadelphia,  December  13,  1912. 

Hon.  Rudolph  Blankenburg,  Mayor, 

Philadelphia,  Penn, a. 

Dear  Sir: 

I  beg  leave  to  submit  herewith  a  few  of  the  instances  of  under¬ 
valuations  on  taxable  property  in  the  central  wards  of  Philadelphia  which 
came  under  our  notice  during  the  appraisal  of  central  property  which  we 
made  in  1910  by  order  of  City  Councils,  and  which  as  you  know  was  inter¬ 
rupted  by  injunction  from  the  courts.  I  desire  particularly  to  call  your 
attention  to  the  fact  that  the  taxable  under-valuations  herein  contained  were 
for  the  year  1910,  and  that  a  number  of  them  have  already  been  in  a  meas¬ 
ure  corrected  by  the  Board  of  Revision  of  Taxes,  which  based  their  new 
figures  partly  on  our  reports  published  at  that  time,  and  partly  on  prices 
developed  by  the  sales  of  many  of  these  properties. 

The  assessment  lists  for  the  present  year  which  we  have  inspected 
show  that  in  the  case  of  sales  made  during  the  past  two  years,  since  our 
work  was  interrupted,  the  Board  of  Revision  of  Taxes  has  apparently  made 
an  effort  to  arrive  at  approximate  true  values  based  on  those  sales,  with 
respect,  however,  only  to  the  properties  which  were  sold,  and  possibly  two 
or  three  properties  adjoining.  This  has  been  in  accordance  with  the  usual 
procedure  of  the  Board  of  Revision  in  making  assessments  in  the  past.  The 
faultiness  of  this  method  is  very  apparent  when  we  discover  a  few  proper¬ 
ties  in  a  block  which  have  been  greatly  increased  in  assessment  value,  due 
to  the  price  paid  for  one  in  the  immediate  vicinity,  while  the  assessed  val¬ 
uations  of  the  other  properties  in  the  block  are  permitted  to  remain  un¬ 
touched,  evidently  on  the  assumption  that  the  rise  in  value  which  was  dis¬ 
closed  by  this  particular  sale  has  been  confined  to  that  property  and  a  few 
adjoining,  instead  of  being  distributed  over  the  whole  block  or  district. 
With  the  use  of  a  unit  system  for  determining  and  distributing  values  such 
practices  as  this  on  the  part  of  the  assessors  would  be  impossible,  as  the 
Somers  System  provides  a  method  by  which  the  assessors  can  express  intel¬ 
ligent  judgment  of  street  values,  and  can  distribute  that  judgment  to  the 
various  lots  in  accordance  with  their  respective  sizes,  shapes  ,and  locations. 

One  of  the  most  recent  central  sales  is  that  of  the  property  1425-27 
Chestnut  Street,  which  has  been  sold  for  a  consideration  reported  on  good 
authority  to  be  $600,000.00.  Our  total  valuation  on  these  properties  in  our 
appraisal  of  1910  was  $422,703.00.  They  were  assessed  at  that  time  by  the 
Bo,ard  of  Revision  of  Taxes  at  a  total  of  $350,000.00.  Since  that  time,  I 
understand  that  there  has  been  a  great  increase  in  value  in  the  vicinity  of 
Broad  and  Chestnut  Streets,  so  that  it  is  quite  probable  that  an  appraisal 
made  by  us  at  present  on  the  properties  would  disclose  a  much  higher 
figure  than  that  of  two  years  ago.  The  present  assessment  is  $440,000.00. 

Another  recent  sale  was  that  of  the  property  1420-26  South  Penn  Square, 
owned  by  the  Joseph  Harrison  Estate,  which  was  sold  recently  to  Mr. 
George  H.  Earle,  Jr.,  for  $800,000.00.  Our  appraisal  of  this  lot  in  1910  was 
$722,976.00.  It  was  taxed  in  that  year  by  the  Board  of  Revision  of  Taxes 
£  on  a  valuation  of  $500,000.00.  The  present  assessment  is  $600,000.00. 


3 


The  building  12  and  14  South  Broad  Street  was  recently  sold  to  the 
Finance  Company  of  Pennsylvania  for  about  $450,000.00,  and  immediately 
after  resold  to  the  Pennsylvania  Railroad  for  a  price  stated  on  good  author¬ 
ity  to  be  $525,000.00.  Our  appraisal  of  this  lot  in  1910  was  $451,283.00.  It 
was  assessed  at  that  time  on  a  valuation  of  $375,000.00.  The  present  assess¬ 
ment  is  $430,000.00. 

The  adjoining  property,  16  South  Broad  Street,  which  was  also  sold  to 
the  Pennsylvania  Railroad  quite  recently  for  $225,000.00.  was  appraised  in 
1910  at  $204,769.00.  It  was  assessed  in  that  year  by  the  Board  of  Revision 
of  Taxes  on  a  valuation  of  $160,000.00.  The  present  assessment  is  $190,- 
000.00. 

The  lot  at  the  northeast  corner  of  13th  and  Filbert  Streets,  on  which 
the  hotel  Vendig  is  now  being  built,  was  appraised  by  us  in  1910  at  $465,- 
871.00.  It  was  assessed  in  that  year  by  the  Board  of  Revision  of  Taxes  at 
$275,000.00.  Its  present  assessment  is  $356,000.00. 

The  properties  22  to  36  North  13th  Street,  which  were  recently  sold 
by  the  Roger  Brown  Estate  for  $342,500.00,  and  resold  immediately  after 
for  a  price  considerably  higher  were  appraised  by  us  in  1910  at  $326,330.00. 
They  were  assessed  in  that  year  on  a  valuation  of  $252,000.00.  The  present 
assessment  is  $296,000.00. 

The  property  1015  Market  Street  was  appraised  by  us  in  the  year  1910 
at  $349,590.00.  It  was  assessed  in  that  year  on  a  valuation  of  $300,000.00. 
It  has  since  that  time  been  sold  to  Berg  Brothers  for  $375,000.00,  and  is  now 
incorporated  in  their  store.  The  present  assessment  is  $355,000.00. 

The  Wanamaker  Store  was  appraised  by  us,  both  land  and  buildings,  in 
1910  for  a  total  of  $17,378,219.00.  Its  assessed  valuation  in  that  year  was 
$9,250,000.00.  Its  present  assessed  value  is  $13,000,000.00. 

The  lot  1229  to  1235  Chestnut  Street,  on  which  the  new  Adelphia  Hotel 
is  being  built,  was  appraised  by  us  in  1910  at  $1,115,538.00.  It  was  assessed 
in  that  year  at  $800,000.00.  The  lot  has  since  been  resold  to  the  Bingham 
Hotel  Company  for  $1,250,000.00.  The  present  assessment  is  $1,200,000.00. 

The  Snellenburg  Department  Store  at  11th  and  Market  Streets,  owned 
by  the  Girard  Estate,  was  appraised  by  us  in  1910,  at  $6,749,630.00.  Its 
assessed  valuation  in  that  year  was  $4,250,000.00.  Its  present  assessed  valu¬ 
ation  is  $5,000,000.00. 

The  Betz  Building,  at  Broad  and  South  Penn  Square,  was  appraised 
by  us  in  the  year  1910  at  $2,288,802.00.  Its  assessed  valuation  in  that  year 
was  $1,800,000.00.  The  property  is  understood  to  be  in  the  market  today 
and  is  held  very  firmly  at  a  figure  of  $2,500,000.00.  The  present  assessment 
is  $2,000,000.00. 

The  properties  25  and  27  North  Juniper  Street  owned  by  the  Joseph 
Harrison  Estate,  were  appraised  by  us  in  1910  at  $251,124.00.  Their  total 
assessment  for  that  year  was  $150,000.00.  It  is  stated  on  good  authority  that 
they  cannot  be  purchased  today  for  much  less  than  $260,000.00.  The  pres¬ 
ent  assessment  is  $215,000.00. 

The  adjoining  property,  23  North  Juniper  Street,  was  appraised  by 
us  in  1910  at  $101,632.00.  It  was  assessed  in  that  year  ,at  $70,000.00.  It 
cannot  be  bought  today  for  much  less  than  $150,000.00.  Its  present  assess¬ 
ment  is  $110,000.00. 

The  lot  on  the  southeast  corner  of  Broad  and  Walnut  Streets,  on  which 
the  Ritz-Carlton  Hotel  is  now  built,  was  appraised  by  us  in  1910  at  $529,- 
028.00.  It  was  assessed  in  that  year  at  $450,000.00.  The  lot  was  since  sold 
to  P.  A.  B.  Widener  for  $550,000.00.  Its  present  assessment  is  $500,000.00. 

The  adjoining  property,  211  South  Broad  Street,  was  appraised  by  us 
in  1910  for  $131,103.00.  It  was  assessed  in  that  year  at  $100,000.00.  It  has 
since  been  sold  for  $175,000.00,  which  was  considered  an  unusually  high 
price  paid  by  the  Weightman  Estate,  on  account  of  the  value  of  the  lot  to 
the  estate.  Its  present  assessment  is  $110,000.00. 

No.  1334  Walnut  Street  was  appraised  by  us  in  1910  at  $320,406.00.  It 
was  assessed  in  that  year  for  $260,000.00.  It  has  since  that  time  been  sold 
for  about  $350,000.00.  The  present  assessment  is  $275,000.00. 

4 


There  has  been,  as  your  Honor  doubtless  knows,  a  great  development 
in  the  neighborhood  of  Broad  and  Walnut  Streets  in  the  past  two  years, 
due  to  the  erection  of  several  large  buildings  in  that  immediate  vicinity. 
This  has  greatly  improved  real  estate  values  on  Walnut  Street  for  a  couple 
of  squares  east  and  west  of  Broad  Street.  While  the  assessors  have  taken 
note  of  this  condition  by  making  a  number  of  increases  in  taxable  valua¬ 
tions  in  this  vicinity,  their  figures  are  as  yet  according  to  our  information 
considerably  below  the  real  value  of  the  properties.  We  might  give  as  an 
instance  of  this  the  property  1324  Walnut  Street,  which  was  appraised  by  us 
in  1910  for  $106,339.00.  The  owner  of  this  property  according  to  reliable 
information  given  us  has  recently  refused  an  offer  of  $100,000.00  for  this 
property,  with  the  intimation  that  the  price  will  have  to  be  close  to  $150,- 
000.00  to  buy  it.  This  property  was  assessed  in  1910  for  $60,000.00,  and  we 
are  informed  that  the  assessment  for  next  year  remains  at  the  same  figure. 
As  we  have  not  had  access  to  the  1913  valuations  we  cannot  answer  for  the 
accuracy  of  this.  We  note,  however,  that  the  assessment  for  the  present 
year  is  still  $60,000.00.  Between  $9,000.00  and  $10,000.00  a  front  foot  are 
the  figures  at  which  practically  all  property  on  Walnut  Street  between  13th 
and  Broad  Streets  is  at  present  held.  The  taxable  valuations  for  the  pres¬ 
ent  year  are  very  much  below  those  figures.  No.  1304-6  Walnut  Street,  for 
instance,  were  appraised  by  us  in  1910  at  $97,263.00  and  $85,832.00.  They 
were  each  assessed  in  that  year  at  $63,000.00.  It  is  well  known  that  the 
owner  could  easily  get  today  $300,000.00  for  the  42  feet  6  inches  of  frontage 
which  he  controls  in  this  location.  His  price  is  believed  to  be  close  to  $400,- 
000.00  or  almost  $10,000.00  per  front  foot.  These  properties  are  assessed 
today  for  a  total  of  $63,000.00  each. 

The  row  of  dwellings  on  the  south  side  of  Walnut  Street  extending  from 
1418  to  the  Flanders  Office  Building,  all  of  which  are  built  on  very  large 
lots,  were  ap'praised  by  us  in  1910  at  an  average  of  $250,000.00  for  each  one. 
They  were  assessed  in  that  year  at  $135,000.00.  No.  1418  Walnut  Street  was 
sold  several  months  ago  for  $300,000.00  as  a  site  for  a  new  building.  We 
understand,  though  the  information  is  not  given  authoritatively,  that  the 
assessors  have  added  $50,000.00  to  the  taxable  valuation  of  each  of  these 
properties  for  the  year  1913,  making  their  valuations  on  an  average  of 
$185,000.00  for  each  one,  which  is  still  considerably  below  their  real  value. 
They  are  assessed  for  the  present  year  at  from  $128,000.00  to  $135,000.00. 

On  the  north  side  of  Walnut  Street,  west  of  Broad,  the  properties  1419 
to  1437  Walnut  Street  were  appraised  by  us  in  1910  at  figures  running  from 
$95,867.00  to  $119,082.00,  running  as  follows:  No.  1419,  $99,052.00;  No.  1421, 
$98,616.00;  No.  1423,  $98,105.00;  No.  1425,  $97,249.00;  No.  1427,  $96,325.00; 
No.  1429,  $95,867.00;  No.  1431,  $99,130.00;  No.  1433,  $105,380.00;  No.  1435, 
$111,838.00,  and  No.  1437,  $119,082.00.  These  properties  were  valued  for 
taxation  purposes  in  that  year  at  figures  running  from  $80,000.00  to  $84,- 
000.00  for  each  one.  They  are  assessed  for  the  present  year  at  figures  run¬ 
ning  from  $90,000.00  to  $94,000.00  each,  and  sell  at  close  to  $125,000.00  each. 

The  Dexter  Building,  1439-41  Walnut  Street,  corner  of  15th,  was  ap¬ 
praised  by  us  in  1910  at  $346,685.00.  It  was  assessed  in  that  year  at  $200,- 
000.00.  Since  that  time  it  has  been  sold  for  $310,000.00,  and  resold  for  a 
slight  advance.  It  was  generally  considered  very  cheap  at  $310,000.00.  The 
owner  today,  it  is  understood,  will  not  consider  less  than  $400,000.00.  The 
property  is  assessed  for  the  present  year  at  $275,000.00. 

The  improvement  in  values  on  Walnut  Street  manifests  itself  very 
clearly  as  far  as  16th  Street.  The  properties  1529-31  Walnut  Street,  north¬ 
east  corner  of  16th  Street,  were  appraised  by  us  in  1910  at  $284,047.00. 
They  were  assessed  in  that  year  at  $190,000.00.  This  property  has  been 
resold  during  the  present  year  for  a  price  reported  to  be  $350,000.00,  which 
must  be  discounted  somewhat,  however,  as  the  transaction  represented  a 
trade  in  equities.  These  properties  are  assessed  for  the  present  year  at 
$200,000.00. 

No.  1501  Walnut  Street,  northwest  corner  of  Walnut  and  15th  Streets, 
was  appraised  by  us  in  1910  at  $268,328.00.  It  was  assessed  in  that  year  at 


$175,000.00.  It  is  considered  unlikely  that  this  property  could  be  purchased 
today  for  much  less  than  $300,000.00.  Its  present  assessment  is  $190,000.00. 

No.  1503  Walnut  Street  was  appraised  by  us  in  1910  at  $168,494.00.  It 
was  assessed  that  year  at  $100,000.00.  It  is  considered  doubtful  whether  the 
property  could  be  purchased  today  for  less  than  $175,000.00.  Its  present 
assessed  valuation  is  $105,000.00,  the  price  paid  for  it  6  years  ago. 

No.  1527  Walnut  Street  was  appraised  by  us  in  1910  at  $124,221.00.  Its 
assessed  valuation  at  that  time  was  $115,000.00.  The  property  is  under¬ 
stood  to  be  held  today  at  $150,000.00,  though  it  is  considered  probable  that 
it  might  be  purchased  for  about  $135,000.00.  Its  assessed  valuation  today  is 
$110,000.00. 

In  our  appraisal  of  1910  we  discovered  that  some  of  the  most  striking 
examples  of  discrepancies  between  assessed  valuations  and  real  values 
occurred  on  the  smaller  streets  in  the  immediate  vicinity  of  that  part  of  the 
central  section  where  the  highest  values  were  disclosed.  On  Drury  Street, 
between  13th  and  Juniper  Streets,  within  half  a  square  of  the  best  section 
of  Chestnut  Street  we  found  several  properties  which  were  taxed  at  not 
more  than  half  the  real  value  of  the  ground  and  in  some  instances  at  less. 
Nos.  1310-14  Drury  were  appraised  by  us  at  $66,374.00.  They  were  assessed 
for  the  year  1910  at  $35,000.00.  The  assessed  valuation  today  is  $50,000.00. 

No.  1308  Drury  Street,  which  we  appraised  at  $18,067.00  was  taxed  on 
a  valuation  of  $8,000.00.  It  is  assessed  today  at  $12,000.00. 

No.  1306  Drury  Street,  which  we  appraised  at  $18,979.00  was  taxed  on 
a  valuation  of  $9,000.00.  It  is  assessed  today  at  $13,000.00. 

Nos.  1302-04  Drury  Street,  which  we  appraised  respectively  at  $28,- 
768.00  and  $19,115.00,  were  taxed  respectively  on  valuations  of  $10,000.00 
and  $10,500.00,  They  were  assessed  today  respectively  at  $12,000.00  and 
$13,000.00. 

The  building  101-109  Juniper  Street  below  Drury  Street,  which  we  ap¬ 
praised  at  $240,049.00,  was  taxed  on  a  valuation  of  $125,000.00.  It  is  as¬ 
sessed  today  at  $170,000.00.  This  property  was  sold  three  years  ago  to  the 
present  owners  for  $245,000.00. 

No.  1317  Sansom  Street,  which  we  found  to  be  worth  $28,151.00,  was 
assessed  on  a  valuation  of  $13,000.00.  It  is  assessed  today  at  $15,000.00. 

No.  1315  Sansom  Street,  which  we  found  to  be  worth  $27,262.00,  was 
taxed  on  a  valuation  of  $13,000.00.  It  is  assessed  today  at  $15,000.00. 

No.  1309  Sansom  Street,  which  we  found  ■  to  be  worth  $38,908.00  was 
taxed  on  a  valuation  of  $15,000.00.  It  is  assessed  today  at  $15,000.00. 

The  foregoing  three  properties  are  conspicuous  instances  of  under¬ 
valuations.  The  last  sale  of  a  lot  of  this  size  in  this  block  disclosed  a  price 
of  $30,000.00,  and  this  lot  was  unimproved. 

Practically  the  same  condition  was  found  in  many  of  the  smaller  streets 
in  the  immediate  vicinity  of  the  best  central  section,  the  assessors  having- 
failed  to  take  note  of  the  fact  that  the  rise  in  value  of  ground  fronting  on  the 
more  traveled  thoroughfares  was  also  reflected  in  a  greater  or  less  degree 
on  the  smaller  streets  in  the  immediate  vicinity. 

Respectfully  submitted, 

WALTER  W.  POLLOCK, 

President  and  General  Manager  Manufacturers’  Appraisal  Company. 


I 


6 


A  CONSTRUCTIVE  PLAN  FOR  EQUALIZING  TAX  ASSESS¬ 
MENTS  OF  REAL  ESTATE  IN  PHILADELPHIA,  AND 
FOR  REORGANIZATION  OF  THE  ASSESSMENT  MA¬ 
CHINERY 


Philadelphia  citizens  do  not  require  all  of  the  evidence  of  the  appraisal 
of  central  business  property  made  by  the  Somers  System  several  years  ago 
to  prove  the  lack  of  equity  of  assessments.  There  is  so  much  evidence  of 
this  sort  that  it  seems  merely  repetition  to  argue  further  along  this  line. 
The  question  now  is,  “What  are  you  going  to  do  about  it?”  These  sugges¬ 
tions  I  believe  will  throw  some  light  on  the  situation.  They  are  based  upon 
our  experience  in  reforming  .assessment  methods  in  a  dozen  cities,  in  five 
different  states,  in  addition  to  our  work  here  in  Philadelphia.  I  would  di¬ 
vide  my  suggestions  into  two  chapters:  First,  administrative  reorganization; 
second,  reform  methods. 

ADMINISTRATIVE  REFORMS 

1.  The  assessing  organization  should  be  a  part  of  the  City  government. 
There  should  be  one  responsible  assessor,  appointed  by  and  removable  by 
the  Mayor,  with  full  authority  to  make  correct  assessments  in  the  light  of 
the  fullest  possible  publicity,  in  accordance  with  the  best  approved  methods. 

2.  There  should  be  not  more  than  five  experts  in  land  values  and  not 
more  than  two  experts  in  building  values,  to  do  the  actual  work  of  ap¬ 
praising  the  land  and  buildings.  These  seven  experts  can  easily  do  all  of 
the  work  of  the  sixty-odd  real  estate  assessors,  if  they  will  use  a  scientific 
system.  The  assessor  should  have  full  authority  over  the  employment  and 
compensation  of  these  men,  with  power  to  decide  all  differences  that  may 
arise  between  them  concerning  assessable  values.  These  seven  men  could 
easily  make  a  complete  reassessment  within  a  year,  using  the  services  of 
draftsmen,  building  measurers  and  non-expert  clerks,  obtainable  through 
civil  service  examination.  The  five  real  estate  experts  and  two  building  ex¬ 
perts  could  make  such  a  reassessment,  if  correct  lot  dimension  maps  exist, 
at  a  total  cost  not  exceeding  the  present  annual  budget  appropriation  to 
the  Board  of  Revision,  which  for  this  year  is,  I  understand,  $279,000.00.  In 
future  years  the  annual  cost  of  the  efficient  operation  of  this  department 
should  not  exceed  $100,000.00.  The  multiplicity  of  assessors  is  unnecessary. 
The  assessment  of  personal  property  for  state  taxation  purposes  should 
be  made  by  a  separate  organization. 

3.  The  cost  of  the  complete  reassessment  of  the  city  of  Philadelphia 
under  a  scientific  system,  could  as  already  stated  be  kept  within  $279,000.00, 
the  present  budget  appropriation  of  the  Board  of  Revision,  as  follows: 

Assessor’s  salary  . $10,000.00 

Five  real  estate  experts .  20,000.00 

Two  building  experts.. .  8,000.00 

Somers  System  service,  for  direction 
of  a  scientific  system  for  computing 
relative  lot  valuations  for  the  entire 
city .  25,000.00 


7 


$63,000.00 


3  0112 


09842841 7 


which  deducted  from  $279,000.00  leaves  $216,000.00  to  pay  (a)  for  field  men 
to  measure  and  describe  upon  cards  all  buildings  in  the  city  for  a  permanent 
record,  the  values  to  be  determined  uniformly  by  the  two  building  experts; 
(b)  for  clerks  to  compute  mathematically  the  relative  values  of  lots,  based 
upon  the  judgment  of  the  real  estate  experts,  after  criticism  by  the  property 
owners  and  the  public  generally;  (c)  for  clerks  to  copy  the  office  records, 
supply  information  to  the  public;  (d)  for  the  miscellaneous  expense  of  the 
office. 

4.  After  a  complete  reassessment  had  been  completed,  the  cost  of  the 
Somers  System  service  would  be  reduced  from  $25,000.00,  the  first  cost,  to 
$6,000.00  per  year;  and  leaving  the  salaries  of  the  Assessor  and  his  real  estate 
and  building  experts  at  $44,000.00,  would  give  $56,000.00  for  all  the  addi¬ 
tional  expense  of  operating  the  department,  if  a  total  budget  of  $100,000.00 
should  be  arranged  for.  It  is  possible  that  three  real  estate  experts  and  one 
building  expert  could  after  the  first  year  keep  track  of  all  changes  in  land 
and  building  values.  All  changes  in  real  estate  conditions  could  be  discov¬ 
ered  and  considered  by  the  real  estate  experts,  expressing  their  judgment 
in  the  form  of  units.  The  building  experts  could  easily  keep  track  of  new 
buildings  and  old  ones  destroyed,  as  well  as  give  attention  to  developing 
a  scientific  system  for  applying  future  building  depreciation  uniformly. 

REFORM  OF  METHODS 

Leaving  out  of  consideration  any  questions  concerning  the  incompetency 
of  the  present  assessors  and  alleged  favoritism  on  their  part,  there  are  some 
fundamental  reasons  for  the  lack  of  equity  in  Philadelphia  assessments.  The 
same  conditions  exist  everywhere  throughout  the  United  States,  except 
where  the  Somers  System  has  been  used  for  equalization.  These  reasons 
may  be  briefly  summarized: 

1.  There  is  a  lack  of  common  judgment  in  ascertaining  values. 

2.  There  is  a  lack  of  a  common  method  of  applying  judgment,  no  mat¬ 
ter  how  obtained. 

3.  There  is  no  adequate  basis  for  comparing  the  value  of  one  lot  with 
that  of  another;  the  value  of  one  farm  with  that  of  another;  the  value  of  one 
city  block  with  that  of  another. 

4.  No  clear  idea  of  the  origin  of  land  value  exists  in  the  minds  of 

assessors. 

5.  No  analysis  of  the  factors  that  enter  into  the  value  of  city  sites 
is  attempted. 

6.  While  there  is  a  general  recognition  of  the  law  of  comparative 
valuation,  there  is  no  method,  or  at  best  the  very  crudest  methods,  of  car¬ 
rying  that  law  into  effect;  either  by  the  assessors  or  the  Board  of  Revision 
of  Taxes. 

When  we  come  to  appraising  the  values  of  buildings  and  structures, 
we  find: 

1.  There  is  no  classification  of  buildings,  either  as  to  use  or  con¬ 
struction. 

2.  There  is  no  proper  or  uniform  inventory  of  building  construction. 

3.  There  is  no  proper  or  uniform  method  of  ascertaining  reproductive 
cost. 

4.  There  is  no  proper  or  uniform  method  of  depreciating  building 
values. 

All  of  these  faults  which  are  sure  to  exist  in  some  measure  wherever 
no  scientific  system  has  been  installed,  can  be  easily  remedied  by  the  intel¬ 
ligent  use  of  the  Somers  System,  and  expert  services  for  installing  it.  If 
there  are  other  systems  we  shall,  of  course,  welcome  comparison  and  com¬ 
petition. 


8 


